SMB Cloud Services in Emerging Markets Poised for Explosive Growth

 

Parallels research shows the cloud services market in the developing world is growing over three times as fast as that of the developed world. In our Parallels SMB Cloud Insights Report, we modeled the 2011 global SMB market and estimated it to be $34 billion. 

 

Need more proof? Business Today reports cloud computing will create two million new jobs in India alone by 2015. And here’s a look from ESDS at 24 countries prepared for business in cloud computing. Clearly, these emerging markets are poised for massive expansion.

 

  

 

 

According to Parallels research, more than 60% of the growth in web hosting will come from emerging markets in the next three years, and the worldwide SaaS market will grow to $20 billion by 2014. While these forecasts are dramatic, cloud adoption could be growing even faster.  BSA recently published a study of 24 countries that together account for 80% of the world’s information and communications technology, and it found that cloud computing in developing countries often lags behind because of weak privacy and data protection laws, as well as poor infrastructure.

 

Moreover, government and legal regulations are holding up cloud services in developing nations like India, where there are few protections in place to prevent Internet intermediaries or service providers from seizing data at will. But these issues are being addressed, meaning there still exists is tremendous potential in emerging markets.

 

Parallels research shows that less than 40% of SMBs in developing countries have a company website, making new adopters seeking basic web presence a primary opportunity. Micro and small SMBs in these countries have shown a strong willingness to adapt, as 35% plan to add a third-party web hosting plan in the next three years. Service providers can help encourage this move to the cloud by educating SMBs about the features and benefits of cloud services.  And many of these same firms will never buy a server as well.

 

For more information, watch Parallels CEO Birger Steen’s Q&A from Ask the Experts at Parallels Summit 2012, and download our Parallels SMB Cloud Insights Report.

 

In the coming weeks, we’ll be sharing on this blog a five-part series with even more insights from Parallels continuous SMB Cloud Insights research exploring areas such as hosted infrastructure, web presence, hosted communication and collaboration, business applications, and more.